Research On China's Personal Income Tax Reform

The individual income tax,which plays an important role in modern tax system,has become the most important type of tax in the whole nations.The majority of the countries in the world have this tax.Its function have been put to use in fair distribution and economic regulation.However,correspondingly,the paradox between the individual income tax law and the present economy is increasingly prominent.The drawback existing in the individual income tax seriously restricted the function and affect of the individual income tax;and it also can’t develop in a way suited to the present economic development phase and structure of national income distribution.To build our harmonious society and to promote social justice,tax adjustment is inseparable,tax is an important way to regulate the economy and income,individual income tax adjustment can promote the redistribution of our society,reduce social inequities effectively,promote the social harmony and stability and eliminate incongruous factors.With the restructuring and developing of China’s economy,individual income continues to increase,and the individual income tax gradually developed as one of the important type of tax.This paper made a research from the aspect of individual income tax collection and administration mode to put forward the way to solve the problem is very significant in theory and practice.Chapter 1 introduced the background and significance of the subject,and also concluded the achievements and drawbacks of the study,and then explained the research methods and structures of this paper’s study.Chapter 2 introduced the theoretical basis of Individual income tax mode and its collecting and management.About theory of personal income taxation,the main theory including the exchange,failure of the market,fair taxation theory,and the optimal tax theory.On the personal income tax collection system,the main theory involved are Bounded Rationality compliance theory and game theory.Chapter 3 described the development process of the individual income tax in China,including the mode and management of the individual income tax.Individual income tax is a type of tax collected from each individual’s total income,and it is directly linked with people’s incomes.Then deeply analyze the main problems in our country’s individual income tax mode and collection from the main points of the problems in the individual income tax mechanism and so on.Chapter 4 make a research on the main developed and developing countries’ tax mode and its collection and administration systems on individual income tax,and introduced their methods on tax collection,tax supervision and tax punishment.This example can help us to learn the experience from their countries so that it can set a more reasonable and perfect system in our individual income tax system.For example: advanced individual income tax collection mode,complete mode on individual income tax collection and administration,rigorous tax laws and regulations,overall tax propaganda and tax consultation and mature tax supervision mechanism.Chapter 5 proposed the policies and suggestions on tax income collection and administration from the existing problems in the present system,for example,complete the individual tax income system,strengthen the tax authorities executive force,optimize the tax system environment and improve the individual’s tax compliance.The last chapter is the conclusion,which summarized the main point of the full text,and conduct research in the future prospects,as well as reform and development.Hoping the personal income tax reform can achieve our overall success in the future.